I agree with the workaround you've mentioned when recording the grant, OspreyVillage.
You can record the grant as a deposit and make sure that the affected account is Accounts Receivable.
When receiving deposits, you can directly enter them in the check register. However, we recommend using the Receive Payments feature if you’ve created an invoice for it. Then, deposit it in the Record Deposits/Make Deposits screen.
- Click the Banking and choose Make Deposits.
- In the Received From column, add the customer name.
- For the From Account column, use Accounts Receivable to apply the deposit to a customer invoice.
- Add the amount then press Save and close.
Check out this article for more information: Record and make bank deposits in QuickBooks Desktop
Also I highly suggest consulting your accountant or accounting professional for guidance on which option best suits for you in recording grant.
In case you want to track donations, you can definitely run a few of the following reports in QuickBooks Desktop.
- Budget vs. Actual by Donors/Grants.
- Donor/Grants Report.
- Donor Contribution Summary.
- Budget vs. Actual by Programs/Projects.
You may also want to check out this article to learn more about customizing reports in QuickBooks: Customize reports in QuickBooks Desktop.
Let me know if you need additional assistance in recording grant. I'll be here to keep helping.
